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A firm earns the following cash flows. What discount rate (WACC) would cause the firm to be indifferent between accepting and rejecting the firm if

  1. A firm earns the following cash flows. What discount rate (WACC) would cause the firm to be indifferent between accepting and rejecting the firm if the initial investment were $500?
    • Year: CF
    • 1 90
    • 2 120
    • 3 190
    • 4 160
    • 5 60

  • 7.80%

  • 7.11%

  • 7.34%

  • 7.66%

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